Rick's Cabaret Reports 20 Percent Sales Gain

Tod Hunter
NEW YORK — Gentlemen's club operator Rick's Cabaret International Inc., has announced that July revenues at its clubs were $6.5 million, a 20 percent increase over July 2008 revenues of $5.4 million. Same-club sales for locations open more than a year increased 5.26 percent over the previous July.

"The revenue report for July indicates that our key clubs are doing very well in this difficult economic period," said Eric Langan, president and CEO of Rick's Cabaret. "We had positive growth in key markets such as New York, Miami, Minneapolis and San Antonio. While we still face challenges in several markets we are addressing them aggressively."

The company's flagship Rick's Cabaret/New York City in Manhattan and Tootsie's Cabaret in Miami reported very strong July revenues with increases of more than seven percent each over the previous July. Reported sales at the rebranded Club Onyx in Philadelphia were 65 percent above the previous July, when the location was operated as a Rick's Cabaret.

Last week, Rick's reported that it had raised $7.2 million through convertible debentures to make new acquisitions.

Rick's Cabaret is traded on Nasdaq and operates adult nightclubs in New York, Miami, Philadelphia, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities operate under the names Rick's Cabaret, XTC, Club Onyx and Tootsie's Cabaret. Rick's Cabaret also operates a media division, ED Publications.